Summary
A 42-year-old U.S. Army veteran and security electronic engineer was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited multiple financial delinquencies, including a mortgage past due by $3,383, an account past due by $1,333, a charged-off account of $7,977, a collection account of $547, and a delinquent account of $173.
Additionally, the applicant had four state tax liens, each listed at $10,427, $17,938, $12,019, and $5,050. He also failed to file federal income tax returns for 2006 and 2008, resulting in $3,604 in unpaid federal taxes for 2006. A significant personal conduct concern arose from the applicant's "No" response on his August 2, 2013 e-QIP regarding past failures to file or pay taxes, which was deemed a falsification.
Despite refuting the personal conduct allegations, the applicant could not sufficiently mitigate the financial concerns. The denial was based on ten delinquent debts totaling $62,451, including state and federal tax obligations. The applicant failed to provide adequate evidence of debt resolution or responsible financial management, and proof of payments towards his debts was insufficient.
Why the Applicant Was Denied
- The applicant had ten delinquent debts totaling $62,451, including state and federal tax obligations.
- Insufficient evidence was presented to demonstrate that the applicant's debts were being resolved or that he acted responsibly regarding his financial obligations.
- The applicant failed to provide proof of payments towards his debts, undermining his claims of financial management.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past Due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedAug 28, 2015
- Answer filedSep 28, 2015Requested decision based on the administrative record.
- Hearing heldDec 8, 2015
- Decision dateApr 11, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to Mitigate Personal Conduct Concerns Under Guideline E
- Insufficient Evidence of Financial Responsibility and Management.